Should you rent or buy a house? Here’s a comparison…

Should you rent or buy a house?

Renting or buying a home is among the most critical financial decisions. For many, owning a home is a lifetime fulfillment. Based on financial position, your plans, and personal preferences, below are the pros and cons to help you make this important decision.

Renting a House

A good number of people these days are ruling out home ownership because it simply doesn’t make sense to them.

The Pros

Renting cost is lower per month/year as compared to buying a mortgage, which exerts more pressure and responsibility on your income.

You can choose from a variety of apartments, condos, townhomes and single family homes, depending on your financial capacity, and your rent fee often covers all costs associated with the home.

You are more able to change homes easily since most leases will run for one year. If your job or family requires relocation, renting would be a suitable alternative.

Your property owner will be responsible for carrying out nearly all the repair work and general maintenance.

The Cons

You will not enjoy tax breaks, and you cannot claim tax deduction on mortgage interest

Your renting costs aren’t fixed and may change from year to year

Minimal security and privacy

Home Ownership

For many, home ownership sounds like the best thing in life. However, taking a keen check, it has its own pros and cons too.

Pros

Home ownership provides a greater sense of security and privacy

Home values typically appreciate, build equity, and provide security for the future

Mortgage costs are more stable and predictable since they are often based on fixed-rate terms

Homeowners enjoy tax breaks and deductions on mortgage interests

Cons

Home ownership subjects you to a long-term financial commitment

You’re responsible for all maintenance work, including repairs on the heating system and plumbing among others

Owning a house ties you to one neighborhood and it’s not easy to relocate

Although mortgage payments are usually fixed, they’re generally higher than rent payments and include other fees like property taxes, homeowners insurance and homeowner association fees

Borrowing against your house can be tempting and might leave you financially insecure

Buying a home is a major investment. For the savvy woman, we recommend weighing all the options before making the decision!